Alibaba exits India, offloads remaining 3.4% Paytm stake

Alibaba had 6.26 per cent direct stake in Paytm as of December 2022. Of this, it had sold 3.1 per cent stake in January. The remaining 3.16 per cent was sold on Friday

"Alibaba has sold its complete direct stake in Paytm in the block deal today," a source aware of the development said. (File image)

Listen to this article

00:00

1x 1.5x 1.8x

By Siddhant Mishra

Paytm shares slumped close to 9 per cent Friday after Chinese e-commerce giant Alibaba offloaded its entire holding in the online payments aggregator.

According to data from NSE, Alibaba sold 21,431,822 shares of Paytm’s parent One97 Communications in a bulk deal on Friday, translating to about a 3.4 per cent equity stake. Shares of One 97 tanked 8.75 per cent on the BSE. The company saw a Rs 3,520-crore wipe-out in market capitalisation.

Story continues below this ad

Alibaba had, in January, already pared 3.1 per cent of its 6.26 per cent holding in Paytm. The Chinese company has been exiting its India investments, having already offloaded its stakes in Zomato and BigBasket.

The development brought a halt to the rally in Paytm shares. The stock has gained 3.77 per cent in the last three months. It, however continues to trade below its IPO price of Rs 2,150.

Shares had rallied more than 18 per cent this week, following Paytm’s Q3 results. The firm saw a 42 per cent rise in revenue from operations to Rs 2,042 crore. FE